While the thick mist of the future US economy is waiving the stock market, an OTC stock just reached its historical high price with a quadruple return during past 8 months. SEC declares an investigation into this pink sheet stock and also suspend the trading yesterday under the concerns of price manipulation. The legendary CEO of Neuromama (OTCMKTS:NERO) seems to be to prototype of Wolf of Wall Street. Past criminal activities under the name of fraud just showed how good the CEO was making improper money. This time, the investigation would find out how this multi-billion company continuous can achieve price gain during the past 8 months. Currently, Neuromama gets a market value of 35 billion greater than Tesla with a market value of 33 billion.
The U.S. Securities and Exchange Commission on Monday suspended trading in the shares of Neuromama Ltd., saying it was concerned that manipulation had inflated the value of the unlisted company to $35 billion.
In an order published Monday, the SEC said it halted trading in the firm’s shares until Aug. 26 out of concern that false information, including a claim that the company would have it shares listed on the Nasdaq Stock Market, was driving demand for its stock. Its value had quadrupled in the past four months, rising as high as $56.25 a share in over the counter trading.
The company’s website claims that Neuromama.com is a “leader in technology, innovation & research” and urges investors to “learn how we’re changing the world.” The site says the company has partnered on projects with Mexico’s Department of Culture, has developed a search engine and social network, and is seeking financing to build a casino and resort in Ensenada, a coastal city on the Baja California peninsula.
Neuromama hasn’t disclosed annual financial results since April 2013, when it reported having total assets worth just $4,721 and was known as Trance Global Entertainment Group Corp. In a quarterly filing made nine months later, the company valued its assets at $18.2 million, most of which it attributed to a “library of entertainment assets” that it acquired in September. In separate correspondence with the SEC, the company said the entertainment assets included 65 Jazz Network TV shows “as well as a syndication agreement that includes Direct TV and Dish Network among other distribution channels.”
The website says the company’s advisory board is chaired by Steven Schwartzbard, who also goes by the name Vladislav Steven Zubkis. The SEC in 1997 previously sued Mr. Zubkis over claims that he illegally sold $10 million worth of shares in International Brands Inc. to investors and made fraudulent statements about the company’s revenue and future stock price. A disclosure on Neuromama’s website says he later spent five years in federal prison. News accounts show that prosecutors accused him of defrauding investors of more than $1.8 million related to a Las Vegas casino purchase and development of a storage facility.